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What is the principal residence exemption?

Relief from capital gains tax on a family home, claimable for years the property was your principal residence.

Draft — pending review. This page has been prepared but has not yet been reviewed by a Canadian estates lawyer or a qualified scholar. Treat it as a starting point for questions, not as advice you should act on.

Relief from capital gains tax on a family home, claimable for years the property was your principal residence.

The Canadian position

One property per family per year. The exemption can be claimed on the final return.

Rental or vacation properties generally do not qualify for the full exemption.

The Islamic position

It reduces the estate's tax bill, leaving more to divide by the shares.

It has no effect on entitlement, only on the size of the pool.

Across the madhahib

The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.

Before you act on this

General information, not legal or religious advice. Inheritance depends entirely on the exact family circumstances. Confirm the Canadian position with a lawyer in your province and any religious ruling with a qualified scholar.

Citations & sources

Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.

Scholarly & institutional references
  1. Research Papers — Cambridge Muslim College
  2. Research — Cambridge Muslim College
  3. Academics — Islamic law and theology curriculum — Zaytuna College
  4. Encyclopaedia of Islam — Brill
Canadian legislation & government
  1. Principal residence exemption — Canada Revenue Agency
  2. What to do when someone has died — Canada Revenue Agency
  3. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Canadian legal commentary
  1. Non resident executor estate tax residency ontario — Treadstone Law
  2. Cottage capital gains tax death ontario — Treadstone Law
  3. Deemed disposition executor duties ontario — Treadstone Law
  4. Us estate tax exposure ontario resident us property — Treadstone Law
  5. Deemed disposition canada death emigration trusts — Treadstone Law
  6. Clearance certificate estate trustee liability canada — Treadstone Law
  7. Wills & estates practice — Treadstone Law